Among other precious metals, silver bounced back from its two-week low levels and closed 0.91% higher at $18.07/oz, tracking higher gold prices.
Base metals were also firm yesterday which extended some positive cues to silver prices. Equities showed some resistance and saw limited fall.
Facts:
The dollar index strengthened further and settled 0.4% higher at 82.606 levels. Both gold and the dollar are attracting flight-to-quality demand amidst soft economic data from major economies of the world.
Equities weakened further on continued concerns of faltering global economic recovery. The benchmark MSCI world index for stocks closed down by 0.61%. Ishares silver trust maintained its holdings at 9151.03 MT yesterday.
MCX silver futures for September month were up by 0.41% to close at Rs. 28,939/kg, partly held back by volatile trades in Indian rupee.
Outlook
Silver is up in Asia and trading higher at $18.14/oz on improved economic outlook as Germany and European economy may show an impressive expansion in second quarter. Moreover, rising retail sales and improving Michigan confidence data from the US may add further cheers to markets. Asian equities are overall lower after jobless claims rose in the US and Europe’s industrial output declined in June. However, today’s data may result in markets retreating on account of improving market sentiments.
